This Tuesday, August 3rd, Empresas Lipigas S.A released the results for the period ended June 30, 2022.

Highlights last 6 months:

  • EBITDA generated was CLP 50,573 M, 7.5% higher than in the previous year (CLP 47,045 M). Chile slightly increased its EBITDA by CLP 137 M (+0.4%). Colombia increased its EBITDA by CLP 672 M as a result of higher unit margins and higher sales volumes. Peru increased its EBITDA by CLP 2,719 M due to higher unit gross margin and higher sales volumes, mainly in NG. Operating income decreased slightly by -0.8% compared to the previous year, mainly impacted by higher operating expenses, affected by inflation in the 3 countries and the devaluation of the Chilean peso. This was partially offset by a higher gross margin (+10.6%), mainly in Colombia and Peru.
  • Consolidated LPG sales volume increased 3.7%.
  • Consolidated sales volume in LPG equivalent tons (including sales of network natural gas, compressed natural gas and liquefied natural gas) increased 5.8%, with a 20.4% increase in sales of natural gas in its different formats.
  • Income after taxes decreased by 23.4% mainly due to a decrease in non-operating income due to the exceptional positive result generated in 2Q21 by the expropriation of the land in the Callao area in Peru for CLP 4,409 M.

Highlights 2Q 2022:

  • EBITDA generated was CLP 32,504 M, 19.6% higher than the previous year (CLP 27,168 M). Chile increased its EBITDA by CLP 2,108 M ( +9.3%) due to a higher unit gross margin and higher sales volumes of both LPG and NG, which were offset by higher expenses. Colombia increased its EBITDA by CLP 1,020 M (+35.4%) due to higher unit margins and higher sales volumes. Peru increased its EBITDA by CLP 2,208 M (+144%) due to higher unit gross margin and higher sales volumes, mainly in NG. 
  • Operating income increased by +19.0% compared to the same quarter of 2021 mainly impacted by higher gross margin, partially offset by higher operating expenses.
  • Consolidated LPG sales volume increased by 4.7%.
  • Consolidated sales volume in LPG equivalent tons (including sales of network natural gas, compressed natural gas and liquefied natural gas) increased 6.9% with a 22.4% increase in sales of natural gas in its different formats.
  • Income after taxes decreased by 7.9% because of a decrease in non-operating income due to the exceptional positive result generated in 2Q from the expropriation of the land in the Callao area in Peru for CLP 4,409 M.

In this regard, the General Manager of the Company, Ángel Mafucci, explained that “Lipigas results continue to be affected by the increase in international prices of oil by-products, which has impacted the entire industry. When comparing the average value of the Mont Belvieu reference (which is applied to determine the cost of LPG) of the first half of 2022 with that of December 2020, the increase has been 98% in dollars (122% in Chilean pesos). The increase in the cost of LPG was compounded by the increase in general inflation in all the countries where we operate, the increase in the international price of inputs (including steel and liquid fuels) and the increase in the exchange rate. In Chile, the consumer price index for the first half of 2022 increased 9.9% with respect to the first half of 2021. Colombia and Peru showed similar increases”.

He further added that “Concerned with helping our customers in mitigating price increases, we have continued to expand our network of nearly 100 LipiVecino points of sale, a service that sells cylinders without delivery, in which 100% of the savings in distribution are passed on to customers. This initiative now has the potential to reach nearly 9 million people. We have also continued to expand our agreements with municipalities to offer discounts to all neighbors who register for the benefit in their municipality.  We have already signed these public-private alliances with more than 130 municipalities, that is, more than a third of the country’s total. As a result, more than 8 million people now have the option to access lower prices. Our goal is to continue expanding both initiatives”.

FULL PRESS RELEASE HERE